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FAQ: How do I manage delinquency reports in a multi-serviced environment?

November 2, 2011

As a Direct Loan servicer, Nelnet’s Partner Solutions team receives questions from the school financial aid and borrower community on a regular basis.  In an effort to share the information and educate our school partners, Partner Solutions is posting to its blog some of the more relevant and well-timed questions that we receive.

Q:  How do I manage delinquency reports in a multi-serviced environment?

A:  Delinquency management is more important than ever. Yet, many schools can be confused about how and where to access their students’ information.  There is no magic bullet in this area; however, there are some “best practices” you can follow to manage your borrower data.  The current Title IV servicers have real-time reporting options that provide you with up-to-the-minute information on your borrowers. To find out what you need to know:

  1. Contact the servicers that have federally held loans (FFEL loans sold to the Department and Direct Loans) in your school’s borrower portfolio that will impact your cohort default rate.  Those servicers are Nelnet, Sallie Mae, Great Lakes, Fed Loan Servicing (PHEAA), and ACS. Request access to each servicer’s online reporting tool.  Please note that Nelnet and ACS data are both running on the Nsight platform, and only one login is required to access both servicers’ data; however, if you are not yet set up, you would need to specify that you would like access to both.
  2. Once you have access to the tool, determine the best time frame for running reports.  Typically, setting up an auto-run with each entity for reports to hit your e-mail at roughly the same time can make the review of reports more efficient.  Additionally, if you request your reports to be in Excel, you can combine data into a single report to facilitate ease of review.
  3. Remember, commercial FFEL loans are also still impacting your cohort.  These loans remain with the guarantor/servicer assigned under the FFEL Program.  Schools should continue to access data for these loans as they have in the past.

There is also growing confusion over the additional not-for-profit servicers that will be assigned loans.  At this point, loans assigned to these servicers are not in the active cohort of loans that will impact school default rates.  These loans are older and have been in repayment beyond the 3-year period schools need to monitor.

Have more questions?  Please let us know.  We will get them answered for you.

Dana Kelly, Southern Regional Director

3 Comments leave one →
  1. Melet Leafgreen permalink
    November 3, 2011 7:14 am

    Is there not a pretty good report in NSLDS that would allow us access to all of the TIVA-held loans? I can’t remeber for sure, but I thought there was.

    • Dana Kelly permalink
      November 3, 2011 9:04 am

      There is a report in NSLDS for delinquent borrowers. The difference is that NSLDS is not real time…. Servicer reports are real time and allow you confidence in having up to the minute accuracy.

    • November 10, 2011 11:24 am

      Melet…good point. And I know they always working to create more reports based on the feedback they get from schools. Jim

      P.S. You going to FSA?

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